LV= has simplified both its lump sum and drawdown products by halving the number of age bands to just three: 60-80, 81-85, and 86-95. This simplification also coincides with a reduction in the rates charged for each new age range.
The interest rate now charged on LV=’s lifetime mortgage for a customer aged up to 80 is 6.69% AER, with a rate of 6.79% AER for the same age range on its flexible lifetime mortgage.
Vanessa Owen, LV= head of equity release said: “The feedback we received from IFAs indicated that customers found the guaranteed features of our equity release products, such as clearly defined early repayment charges, really attractive. But clients felt less comfortable if the interest rate was over 7%. Where possible, we have brought our interest rates below this ‘tipping-point’. I am confident that our new lower rates coupled with simplified age bands and our guaranteed benefits makes our equity release product a really strong offering for advisers.”
Advisers that have submitted an application, but whose client has not yet been offered a lifetime or flexible lifetime mortgage will automatically be offered a mortgage at the new lower rate.
